KARACHI: Renewed buying interest at the lower level helped prices surge on the cotton market on Friday. However, short supply and lack of interest from ginners to sell lint kept activity slow and restricted.

Floor brokers said that while ginners are demanding higher prices, spinners are unwilling to exceed certain limit to keep cotton yarn export parity.

Most of the deals were transpired on credit indicating that spinners are facing liquidity problem, brokers said.

Brokers said new crop arrival may be earlier than expected and could start flowing from mid-July.

Spot rates issued by the Karachi Cotton Association (KCA) were unchanged.

The following deals were reported to have changed hands on ready counter: 1000 bales were sold by mill to another mill at Rs5600, 2000 bales from Mehrabpur done at Rs5600 (conditiona), 200 bales Lodhran at Rs5150, 200 bales Bahawalpur at Rs5400, 724 bales Alipur at Rs5550 and 400 bales Khanpur at Rs5625.

Published in Dawn, May 30th, 2015

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